Ecolomondo Corporation (OTC:ECLMF) Stock On Watchlist After Project Restructuring Agreement
Investors are nowadays increasingly keen on companies in the clean tech sector, and a company that could be worth tracking is Ecolomondo Corporation (OTC:ECLMF). The company is involved in the commercialization of its proprietary recycling technology, the Thermal Decomposition Process (TDP), and the global deployment of turnkey facilities related to TDP.
On Thursday, the company was in the news cycle after it announced that it had reached an in-principle agreement for the restructuring of its original loan agreement in place with Export Development Canada (EDC). It may be a good idea for investors to take a closer look at the development ahead of the start of trading today.
Ecolomondo Corporation’s original loan had been for the amount of $32.1 million for project financing activities with EDC and had been executed on April 3, 2019. The loan had been meant for the construction of the unique new turnkey thermal decomposition plant of the company in the town of Hewkesbury, Ontario. The plant had been earmarked for processing end-of-life tires for the purpose of producing reusable items. It was revealed yesterday that, for the purpose of having the time to restructure the loan, EDC had decided to postpone principal as well as interest payments up until December 29, 2023.
If the final documentation is completed pertaining to the loan restructuring, the interest rate on the loan would be capped at 8.5%, with interest payments and capital principal payments deferred up until May 2024.
Eventually, the original would be repaid in the form of quarterly instalments of interest and principal. It would be based on 25-year amortization. The final balance as well as the capitalized interest would become due once the loan matures in May 2029. In the news release yesterday, it was revealed that the final documentation would be completed by the middle of December 2023.
